On January 8, 2021, Blacksmith Medicines, Inc., a biotechnology company focused on creating novel medicines for immuno-oncology and inflammatory diseases by targeting human metalloenzymes, announced that it has secured seed funding and has entered into a research collaboration with Eli Lilly and Company (Lilly). Lilly joins existing Blacksmith investors Evotec A.G., MP Healthcare Partners, MagnaSci Ventures, and Alexandria Venture Investments. Blacksmith is a spin-out of Forge Therapeutics, a leading antibiotic discovery company discovering therapies to combat the rise of drug resistance. Wilson Sonsini Goodrich & Rosati advised Blacksmith Medicines on IP matters related to the transactions.

Under the terms of the research collaboration agreement, Blacksmith and Lilly will collaborate on up to five human metalloenzyme targets, with Blacksmith advancing novel small molecule inhibitors from fragment to "hit" stage, after which Lilly has the right to continue research, development, and commercialization. Blacksmith will receive an upfront payment and an investment from Lilly in exchange for a convertible note and will be eligible for up to approximately $60 million per target in potential research, development, and commercial milestones for a total potential deal size up to approximately $300 million.

The Wilson Sonsini team that advised Blacksmith Medicines in IP matters related to the transactions includes:

Intellectual Property
Michael Hostetler
Deborah Smith
Tyler Baguley

Technology Transactions
Miranda Biven

For more information, please see Blacksmith Medicines' press release.